Carlos Silva, a Colombian singer, goes on tour to the United States for one month, following high American demand for his live shows. Assuming that all the show's expenses are paid by the U.S. promoters, other things equal, the U.S. tour will bring about:
a. a decreased supply of Colombian pesos in the foreign exchange market.
b. an increased supply of American dollars in the foreign exchange market.
c. an increased supply of Colombian pesos in the foreign exchange market.
d. a decreased demand for Colombian pesos in the foreign exchange market.
e. an increased demand for American dollars in the foreign exchange market.
b
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The basic trade-off in valuing any asset is between:
A. amount of risk and rate of return. B. rate of return and length of loan. C. amount of risk and length of loan. D. rate of return and amount of loan.
For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
a. The opportunity cost of producing watches is higher in Denmark. b. The opportunity cost of producing cheese is higher in Denmark. c. The opportunity cost of producing cheese is identical in both countries. d. It is impossible to compare opportunity costs because the two countries use different currencies. e. In both countries combined, the opportunity cost of one watch is 150 pounds of cheese.
Demand for cocaine is unit Elastic, price of cocaine were to rise 10%,
a. Quantity consumed would fall 10% b. Dealer income from the sale of cocaine would fall 10% c. ANSWER is both FALSE
Suppose you borrow $1,000 to purchase a car. Which of the following correctly represents the changes in your personal balance sheet after the bank lends the money, but before you spend it?
a. Assets: loan, +$1,000 . Liabilities and net worth: checking deposit, +$1,000 b. Assets: loan, -$1,000 . checking deposit, +$1,000 . Liabilities and net worth: no change c. Assets: loan, +$1,000 . checking deposit, -$1,000 . Liabilities and net worth: no change d. Assets: checking deposit, +$1,000 . Liabilities and net worth: loan, +$1,000 e. Assets: checking deposit, +$1,000 . Liabilities and net worth: loan, -$1,000